Homestead law in Massachusetts is designed to protect a homeowner’s equity in their property from creditors. The amount of protection that a homestead designation provides depends on the value of the home and whether it is the primary residence of the owner.
For example, if a Massachusetts homeowner has a mortgage on their home with an outstanding balance of $100,000 and they file for bankruptcy, the homestead law would protect $125,000 of the equity in their home. This means that the creditor could only go after the remaining $25,000 of equity in the property.
The homestead law in Massachusetts can be an important tool for protecting your assets. If you are considering filing for bankruptcy or have questions about how the homestead law can help you, contact the firm today. We can provide you with the legal guidance and representation you need to protect your assets and get through this difficult time.
How Does the Massachusetts Homestead Law Help Protect Assets?
Massachusetts homestead law provides certain protections for homeowners in the event of foreclosure or bankruptcy. The homestead law allows a homeowner to declare a portion of their home as their “homestead.” This designation protects that portion of the home from creditors in the event of asset seizure.
In order to qualify for this protection, the homeowner must file a declaration with the registry of deeds in the county where the property is located. The declaration must state that the property is the homeowner’s primary residence and include an affidavit attesting to this fact.
Once a property has been designated as a homestead, it remains protected even if the homeowner moves out of it or rents it to another party. The protection lasts for as long as the property is owned by the homeowner, up to a maximum value of $500,000.
Is It Challenging to Apply for Homestead in Massachussetts?
Applying for a homestead in Massachusetts can be challenging. The process can be time-consuming, and several requirements must be met. However, the challenge is worth it, as homesteading can provide many benefits. These benefits include a reduction in property taxes, protection from creditors, and more. If you’re considering applying for a homestead in Massachusetts, our firm’s attorney can help you.
Is Hiring a Lawyer Worth It?
During your consultation, we will review your financial situation and explain how the homestead law could help you protect your equity in your home. We will also answer any questions that you have and provide you with the legal guidance you need to make the best decisions for your situation.
Hiring a lawyer is worth it if you want an important tool for protecting your assets if you are considering filing for bankruptcy. If you have questions about how the homestead law can help you, contact our office for legal guidance. We have experience helping clients protect their assets and we can give you the individualized attention that you deserve. Call us today at (508) 571-5452 to schedule a consultation.